El Paso Natural Gas Company

First Revised Volume No. 1-A

Effective Date: 10/01/1993, Docket: RS92- 60-016, Status: Effective

Original Sheet No. 299C Original Sheet No. 299C : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

31. WASHINGTON RANCH FACILITY STRANDED INVESTMENT COST RECOVERY

This Section 31 applies to those Shippers having an executed

Transportation Service Agreement with El Paso for firm forward haul

service subject to either Rate Schedule T-3 or Rate Schedule

FTS-S. In addition to other charges otherwise due under such Rate

Schedules, Shipper shall pay the Reservation Surcharge pursuant to

this Section 31.

31.1 Purpose - This Section 31 establishes the procedures which

will permit El Paso to recover from its Shippers one hundred

percent (100%) of stranded investment costs associated with

the Washington Ranch Facility. Such costs shall be allocated

to El Paso's Rate Schedule T-3 and FTS-S firm forward haul

Shippers based on each Shipper's reservation revenue

responsibility, as established in the Settlement at Docket No.

RP92-214-000, et al., for the period termed "Prospective

Period."

31.2 Effectiveness - Commencing with the effective date of

El Paso's Stipulation and Agreement at Docket No.

RP92-214-000, et al., El Paso shall be entitled to bill and

collect the Washington Ranch Facility stranded investment

costs. Such costs will accrue interest effective February 1,

1993 and shall be fully amortized by December 31, 1996.

31.3 Definitions - The definition of terms applicable to this

Section 31 are as follows:

(a) Recovery Period - The period beginning on the effective

date any new rates become effective under this Section 31

and ending on the day prior to the effective date of any

succeeding rate change under this Section. The initial

recovery period shall begin upon the effectiveness of the

Settlement at Docket No. RP92-214-000, et al., and end on

the day prior to the effective date of the second

recovery period. The subsequent recovery periods shall

be the six (6) month periods commencing each January 1

and July 1 until all amounts have been amortized and

interest thereon has been recovered.

(b) Monthly Amortized Amounts - The Monthly Amortized Amounts

shall be allocated to El Paso's firm forward haul

Shippers based on each Shipper's forward haul reservation

dollar allocation as established at Docket No.

RP92-214-000, et al., "Prospective Period." The Monthly